Fashion retailer French Connection has agreed to be bought by a consortium for £29m.
The company unanimously recommended a 30p-a-share offer from a consortium that includes second-largest shareholder Apinder Singh Ghura, Amarjit Singh Grewal and KJR Brothers. The price is a 29.9% premium to French Connection’s closing share price on 22 September.
On 23 September, the retailer confirmed it had received an approach from the consortium, after Spotlight Brands and Gordon Brothers pulled out of early takeover talks in March.
The company said that Stephen Marks, who founded the business in 1972 and remains the biggest shareholder, will retire from his role as chairman once the sale completes.
Apinder Ghura already owns just over 25% of the group, while Marks has a 41.5% stake.
Stephen Marks said: “Over the last five years, French Connection has made significant progress in its plans to rationalise the size of its store portfolio and to return the French Connection Group to profitability. It was always our intention to look at the most appropriate ownership structure for the business once it was back on track, and, having conducted a formal sale process, the French Connection board has concluded that the offer being made by MIP is fair and reasonable.
“The price we have negotiated is at a significant premium to the share price prior to the commencement of the offer period and demonstrates the potential offered by the French Connection brand.”
